Ask the law: Employer refuses to give my rights

Question:

I have been working in a private company for five years with a commission and salary system, and I also have 5 per cent shares in the company. Currently, I do not wish to continue working, and I want to obtain all my labour rights in addition to my right in exchange for my percentage in the company, and the employer refuses to give me my rights in a friendly manner. My question is, do I file a civil lawsuit to claim the value of my percentage in the company and then file a labour lawsuit to claim my labor rights? Please advise.

Answer:

To answer this question, I would advise the questioner that:

1. Start with the labour case because the labour rights becomes time-barred after the lapse of one (1) year from the date of entitlement to the right, as per Article 54 of the Federal Decree Law 33 of 2021. This article states that (a lawsuit related to any of the rights accrued under the provisions of the Labour Decree-Law shall become time-barred after the lapse of one (1) year from the date of entitlement to the right that is the subject matter of the lawsuit).

2. Regarding your shares as a partner, you have to file a civil case to claim the value of your percentage. But taking this value doesn’t mean that you withdraw the partnership which can be done through assigning your shares through some actions, like purchasing or giving them away as a gift.

As per Article 79 of the Federal Decree-Law no. (32) Of 2021 on Commercial Companies: "A partner may assign or mortgage his membership interest in the Company to another partner or to a third party. Such assignment or mortgage shall be made in accordance with the terms of the Memorandum of Association of the Company under an official authenticated document, pursuant to the provisions of the Decree-Law. Such assignment or mortgage shall not be enforceable towards the company or third parties except from the date of its entry in the commercial register with the Competent Authority. The company may not refrain from entering such assignment or mortgage in the register unless the assignment or mortgage violates the provisions of the Memorandum of Association or this Decree-Law.)"